In this article, we will discuss: 10 Best EV Stocks to Invest In According to Hedge Funds.
On June 16, Reuters cited Benchmark Mineral Intelligence reporting that global battery-electric and plug-in hybrid vehicle registrations increased by 3% year on year in May to around 1.8 million. It is extending a third consecutive month of growth. According to BMI statistics manager Charles Lester, Europe drove growth with registrations rising 23% to about 415,000 units as subsidies and high gasoline costs boosted demand. The global total remained 0.9% higher year-to-date over the first five months.
China slowed down on momentum, with registrations falling 9% to over 987,000 as support was withdrawn and tax benefits expired, as per BMI. Registrations in North America fell 26% to over 123,000 following the expiry of a US tax credit scheme and projected emissions reductions, according to BMI data manager Charles Lester. He said that Chinese OEMs had expanded internationally and targeted untapped European capacity, and Canada’s market opening will have little impact on the North American growth, according to BMI data.
With that said, here are the 10 Best EV Stocks to Invest In According to Hedge Funds.
Methodology:
We used screeners to identify EV Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 31
NIO Inc. (NYSE:NIO) is among the Best EV Stocks.
On May 28, Reuters reported that NIO Inc. (NYSE:NIO) CEO William Li said China’s auto sector has likely moved past its “golden era,” as domestic car sales continued to weaken into May even when exports held up.
Li stated that the rebound in the world’s largest auto market has not materialized. He stressed that the company remains mainly focused on China, while its overseas shipments launched in 2021 through Norway remain “negligible.”
He commented that China is still the most productive market for pure electric vehicle investment. Capital deployed abroad would take longer to generate returns with less certainty. He said plug-in hybrids and internal combustion vehicles remain better suited for global markets, underlining a split strategy across powertrains.
Li also noted that China’s automobile ownership has reached 370 million vehicles, calling it “no longer a growth market but rather a saturated market.” NIO Inc. (NYSE:NIO) plans to grow spending on smart-driving computing resources fivefold this year as compared to 2025.
NIO Inc. (NYSE:NIO) shares jumped 10.5% in Hong Kong trading, marking its strongest daily percentage gain since March 11.
NIO Inc. (NYSE:NIO) operates as a holding company that designs, develops, manufactures, and sells smart electric vehicles. It offers its products under the brands NIO, ONVO, and FIREFLY.
9. EnerSys (NYSE:ENS)
Number of Hedge Fund Holders: 42
On June 12, BTIG raised its price target on EnerSys (NYSE:ENS) to $280 from $250. The firm retained a “Buy” rating on the shares. Analyst Gregory Lewis highlighted the company’s Investor Day guidance, pointing to expected 3%-5% market growth plus an extra 1%-3% from target-market initiatives. It frames energy storage demand as a multi-year growth driver with margin expansion potential.
On June 10, EnerSys (NYSE:ENS) introduced its EZSelect™ Lite system in Zug, Switzerland. It is a battery-room management tool designed to streamline selection and monitoring through automated diagnostics and real-time tracking.
The corporation said site tests show manual battery selection leads to “30% under-utilised” and “20% over-used” batteries. The EZSelect system reduces inefficiencies through charger level monitoring devices and visual guidance.
The company stated that a 10% reduction in daily truck changes and a 10% faster battery swap can fuel payback in under eight months, with 2–5 minutes saved per change and up to six months of extra battery life.
EnerSys (NYSE:ENS) provides stored energy solutions for industrial applications. It operates through Energy Systems, Motive Power, and Specialty segments.
8. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 43
Ferrari N.V. (NYSE:RACE) is among the Best EV Stocks.
On June 12, Bloomberg reported that Ferrari N.V. (NYSE:RACE) shares dropped nearly 8% after the debut of its first electric vehicle, the Luce. It erased more than $4 billion in market capitalization in hours. Investors reacted alongside owners and fans, with reactions to the design described as a “gut punch” and “betrayal,” and criticized its departure from Ferrari’s traditional combustion identity.
Bloomberg reported the Luce was designed with Jony Ive’s LoveFrom. It was a shift that produced a more minimal form and intensified backlash from collectors who said it lacked the brand’s signature curves and emotional appeal. A Ferrari N.V. (NYSE:RACE)’s spokesperson declined to comment.
The Luce helps Ferrari meet emissions regulations and could draw new customers, but Bloomberg reported it also risks diluting the brand’s core assets and alienating its loyal ownership base. Bloomberg noted that Ferrari’s order books extend into 2027. It shows demand resilience even as sentiment around the launch turned sharply negative.
Ferrari N.V. (NYSE:RACE) is a holding company that designs, engineers, produces, and sells luxury sports cars. The company’s vehicles include the F12 Berlinetta, 488GTB, 488 Spider, 458 Speciale, California T, LaFerrari Hybrid, LaFerrari, and FF four-wheel drive.
7. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 45
Rivian Automotive, Inc. (NASDAQ:RIVN) is among the Best EV Stocks.
On May 28, Reuters reported that Rivian Automotive, Inc. (NASDAQ:RIVN) faced new regulatory scrutiny after the US National Highway Traffic Safety Administration opened a preliminary probe into 114,922 vehicles. The agency said its Office of Defects Investigation received two owner questionnaires reporting that a left rear toe link can separate while driving. It caused vehicles to swerve across multiple lanes, with one incident resulting in a collision with another vehicle and a roadside barrier.
Rivian Automotive, Inc. (NASDAQ:RIVN) responded in an emailed statement cited by Reuters, saying its internal data shows the R1 toe link joints are “operating as intended,” disputing the basis of the questionnaires. The firm also disclosed that it is cooperating with the review.
NHTSA said the probe will examine the sensitivity of the rear toe link joint to road and service conditions and evaluate the automaker’s repair procedures. The investigation follows a January recall of nearly 20,000 previously serviced R1S and R1T vehicles with incorrectly assembled rear toe link bolts, which the firm said it will replace free of charge.
Rivian Automotive, Inc. (NASDAQ:RIVN) designs, develops, and manufactures category-defining electric vehicles and accessories. It operates through Automotive, Software and Services segments.
6. BorgWarner Inc. (NYSE:BWA)
Number of Hedge Fund Holders: 50
On June 12, BofA analyst Alexander Perry raised BorgWarner Inc. (NYSE:BWA)’s price target to $78 from $65. The firm maintained a “Neutral” rating on the shares. It told investors the company has a “significant” near-term opportunity linked to AI-driven data center demand. The firm said BorgWarner’s TurboCell product could help it capitalize as automakers and suppliers expand into non-auto end markets.
On June 10, UBS upgraded BorgWarner Inc. (NYSE:BWA) to Buy from Neutral and lifted its price target to $95 from $61. The analyst noted that the firm is the auto supplier “best positioned” to benefit from non-auto opportunities. UBS added that it expects 23% of revenue and 30% of EBIT from non-auto segments by 2030, driving 19% annual earnings growth from 2027 to 2030.
The corporation maintained its 2026 outlook, expecting $14.0 billion to $14.3 billion in net sales while projecting adjusted EPS between $5.00 and $5.20 and operating cash flow to $1.7 billion.
BorgWarner Inc. (NYSE:BWA) provides technology solutions for combustion, hybrid, and electric vehicles. It operates through the Turbos and Thermal Technologies, Drivetrain and Morse Systems, PowerDrive Systems, and Battery and Charging Systems segments.
While we acknowledge the potential of BWA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BWA and that has 100x upside potential, check out our report about the cheapest AI stock.
Click to continue reading and see the 5 Best EV Stocks to Invest In According to Hedge Funds.
Disclosure: None. Follow Insider Monkey on Google News.
Hedge Fund Resource Center